Hostile takeover? Ripple (XRP) is not afraid

Ripple Labs has long been criticized for controlling the bulk of its “decentralized” cryptocurrency Ripple XRP. However, it is exactly this fact that makes the goal that a small, new crypto company has set itself on the flags so interesting. The name of this company: Valor.

Recently, Axios reported that “some name Valor” is planning a hostile takeover of Ripple XRP. Such an operation could possibly lead to decentralization of the majority of the coins owned by Ripple Labs. It is currently difficult to assess whether Valor's project can be successful. But it does not seem very likely, because that requires a lot of money. But Valor does not seem to have that. In addition, the author of the Axios report pointed out that the information was leaked specifically to the website. So it may be that the leaker (s) pursue hidden goals. One such goal, for example, might be to press the course of Ripple XRP.

The CEO and founder of Valor, Vishal Harpalani, wrote:

“This is a leak and we are currently not commenting on it.”

Valor was already planning to acquire a top 10 cryptocurrency

Previously, Harpalani had told Axios that Valor was planning to acquire a “top 10 cryptocurrency”. However, he did not name the name of the intended cryptocurrency.

The following is known: Harpalani founded Valor in 2017. To the US Securities and Exchange Commission, he said he wanted to raise $ 160 million in capital. In addition to his position as CEO of Valor, Harpalani is also a partner in the venture capital fund “Flight Ventures”. In addition, he holds posts in the supervisory boards of the US companies Nightingale Security and Otto Robotics. According to LinkedIn, Valor has between two and ten employees and is a San Francisco-based, not-for-profit corporation. The key objective of Valor is to provide a payment system for people in developing countries who have no bank account. Ripple Labs is expanding its position in cross-border payments. A takeover of Ripple XRP would therefore be safe for Valor.

Axios reported that Valor wanted to use the funds raised to push Ripple XRP's course. Then you want to make a fork of the network and offer all owners a valor token for each ripple XRP. The aim is to win many new users for their own Blockchain network with little money.

Ripple's Technical Director, David Schwartz, tweeted:

“Very funny. A hostile takeover of the XRP ledger is technically not possible and the plan makes no economic sense. “

Brad Garlinghouse, the CEO of Ripple Labs, joined in explaining:

“The media have a responsibility (…) and are not supposed to disseminate obvious attempts at market manipulation.”

Disclaimer: CoinNewsDesk.com is a crypto news portal, financial discussion forum, and content curator / aggregator. Articles on Coin News Desk are provided for entertainment and information purposes only. We are not an investment advisor and do not provide financial advice.

We can not review all articles posted on CoinNewsDesk.com. Please independently research and verify any information here before relying on it as fact. It's also important to do proper due diligence and analysis, including consulting a professional financial advisor. No content on Coin News Desk makes any recommendation to enter into any type of investment or engage in any investment strategy on this website.